Stoke Launches $125M Offering Post Promising Epilepsy Trial Results

Stoke Therapeutics is capitalizing on the recent success of its Phase I/IIa clinical trial for a drug candidate targeting Dravet syndrome, a rare genetic form of epilepsy. The company has announced the pricing details for a public offering of its common stock, aiming to raise $125 million to support its ongoing research and development efforts.

In this public offering, Stoke is set to issue over 5.5 million shares, each valued at $13.50. Additionally, underwriters have been granted a 30-day option to acquire nearly 1.39 million more shares. The funds generated from this offering are intended to finance the research, clinical trials, process development, and manufacturing of Stoke's product candidates, particularly the Dravet syndrome treatment STK-001.

The announcement of the public offering comes shortly after Stoke reported positive results from the Phase I/IIa trial of STK-001. The trial demonstrated significant improvements in patients with Dravet syndrome, leading to a surge in the company's stock price. Patients who received a 70-mg dose of the drug experienced a median reduction of 85% in convulsive seizure frequency after three months, when combined with existing anti-seizure medications. The open-label extension of the study indicated that continued dosing of 30 mg and 45 mg also led to seizure reduction and enhanced behavior and cognition.

The FDA has approved the use of three 70-mg doses followed by a continued dosing at 45 mg for STK-001. Stoke is planning discussions with the regulatory authority regarding a registrational study for the treatment. The company believes that STK-001 could become the first-ever disease-modifying medicine for Dravet syndrome patients.

The funds raised from the offering will also be directed towards the development of STK-002, an ophthalmology candidate in the preclinical stage, and other potential treatments in Stoke's pipeline. The offering is expected to close around April 2, 2024, and is seen as a strategic move to bolster the company's financial position as it advances its innovative RNA-based therapeutics.